Rainbow Rare Earths Issues Shares to Directors Under Incentive Plan
Why we think this is good
The issue of shares as part of an incentive plan is a common and generally well-received practice, and the dilution to existing shareholders is minimal. There are no apparent negative factors that would significantly impact the company's valuation or share price.
Key Points
- Issue of 583,332 new ordinary shares to directors under Long Term Incentive Plan
- Shares issued for free, representing a 100% discount to previous closing price of 11.25p
- New shares account for 0.09% of total shares in issue after the transaction
- Purpose is to align interests of management with shareholders
Summary
The rare earth minerals company has issued new shares to directors under its Long Term Incentive Plan, with minimal dilution for existing shareholders.
Rainbow Rare Earths Limited has issued 583,332 new ordinary shares to directors under its Long Term Incentive Plan. The shares were issued for free, representing a 100% discount to the previous closing price of 11.25p. The new shares account for only 0.09% of the total shares in issue after the transaction, indicating minimal dilution for existing shareholders. The purpose of the share issue is to align the interests of management with shareholders.
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